SELLING TAX CREDITS

 

IMPORTANT UPDATE
The state has imposed a three-year aggregate cap on the conservation tax credit program for years 2011, 2012 and 2013 as a way to help address the state’s budget shortfall crisis. This went into effect on January 1, 2011 and will sunset on December 31, 2013. In May 2011, House Bill 11-1300 was signed into law which, among other things, changes the allocation of the three-year aggregate cap of $78 million. This means only $22 million in conservation tax credits will be issued by the Division of Real Estate (DRE) for 2011, $22 million for 2012 and $34 million for 2013, for an aggregate total of $78 million.

It is advisable to register early and indicate your intent to sell credits through our firm especially during the 2011, 2012 and 2013 cap years. You will be placed on our priority credit seller list when your registration form is received. 

THE PROCESS
Register with CTCT by completing the CTCT Seller Registration Form [click here].

TAX CREDIT CERTIFICATE APPLICATION & FEE
CTCT will assist you in completing the application and pay your $305 application fee as part of our service. We will review and track your tax credit application packet until you are issued a tax credit certificate, which is required before you can sell your tax credit. DRE encourages donors working with a tax credit broker to list the broker as either the main or additional contact on the application form in order to expedite the process.

TAX CREDIT CERTIFICATE
Once you have closed on your easment CTCT will work with you, your land trust or governmental agency and other conservation professionals to obtain all of your donation documents and prepare your tax credit application.

 

REVIEW OF DONATION DOCUMENTS
CTCT will conduct a thorough due diligence review of all of your donation documents to ensure that your donation meets all state and federal laws, regulations and notices. We will help you make any required changes to your documents, if needed.

TRANSFER PROCESS
Once CTCT has accepted your credit for transfer and your tax credit certificate has been issued, we will match you with a qualified credit buyer. Both sellers and buyers execute CTCT’s Agreement to Purchase/Sell. Transfers are completed by delivering signed copies of the Agreement and checks from the buyers to the sellers.

TAX FILING PAPERWORK
After your credits are sold, we prepare the required paperwork documenting the completed transaction for both you and the buyers to file with your Colorado state income tax returns. This includes completing Department of Revenue (DR) Form 1305 and help with completing Forms DR 1303 and 1304.

GOING MARKET RATE
You receive a percentage of the face value of your credit based on "the market transfer rate." The limited supply of tax credits under the new cap program will affect the rate. Please check with us about the current market rate.

CTCT credit buyers are currently purchasing credits. Selling early can make a big difference to you.

 

 




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Conservation Tax Credit Transfer, LLC ..l ..P.O. Box 898 ..l ..Morrison, CO 80465
Tel: (303) 988-1700 ..l ..Fax: (303) 313-3510

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